Up to 0.3%, the Bloomberg Dollar Spot Index was at 1,230.38. The gauge would reach its greatest level since mid-December if it were to rise beyond the peak set on January 5 at 1,231.44.
Tuesday’s speech by Federal Reserve Governor Christopher Waller is anticipated by investors after Chair Jerome Powell provided the strongest indication yet that a series of rate cuts were imminent for 2024. After a US vacation, trade resumed with rising Treasury rates throughout the curve.
Higher US rates have been the main factor driving the dollar’s increase, according to Mingze Wu, a currency trader at Singapore’s Stonex Financial Pte. It might just be the case that the market is now over its hangover and realising that Powell might not be lowering rates.